Buying my parents' Council House

mattcafc

Hi All,

After some advice if I may.

My parents have been offered the 'right to buy' scheme several times, being told they would be entitled to a £75k discount and now it's looking a possibility that they/we could purchase it.

I have a few questions that you may be able to help with, that may put a stop to this straight away though. I no longer live with my parents, however I would like to purchase it (along with my parents), is this allowed on the right to buy scheme? If so how does this work?

Secondly, how do I find the valuation of the property, or moreso how does it work in terms of the 75k discount. Is that a discount on the price that I get when valued by someone, or do they have a valuation themselves? (Checking on Zoopla etc, the estimates range from £270k to £330k which is quite the difference!)

Any infomation and help would be appreciated

kingstreet

No. You have to be a family member of the tenant, resident in the property for twelve months, before you can be included in the purchase.

The council values the property once the RTB1 form is submitted. The price, discount etc. is set out in the S125 notice sent to the prospective purchaser.

duchy

Why on earth would you expect to have right to buy on a property you have no connection with any more ?

Next thing you'll be telling us you already own another property too !

mattcafc

duchy wrote: »

Why on earth would you expect to have right to buy on a property you have no connection with any more ?

Next thing you'll be telling us you already own another property too !

I dont think I have a right to buy.

As mentioned it's my parents who are purchasing, I was going to contribute towards it so thought I would add myself to the owners.

And yes, I do already own another property.

Better_Days

mattcafc wrote: »

I dont think I have a right to buy.

As mentioned it's my parents who are purchasing, I was going to contribute towards it so thought I would add myself to the owners.

And yes, I do already own another property.

Oh dear, I hope you have your tin hat on!

newsgroup_monkey

OK, so let me get this right.....

The OP wants to help his parents buy their Council house so that they have somewhere to retire to. He also wants to ensure he doesn't lose out on that investment when they die by adding himself to the land registry (they couldn't "gift" it back because they may get a deprivation of assets order).....

And people say to put on a tin hat?

Am I missing something?

SternMusik

newsgroup_monkey wrote: »

OK, so let me get this right.....

The OP wants to help his parents buy their Council house so that they have somewhere to retire to.

The OP's parents already have somewhere to retire to. A council home with a secure tenancy and no maintenance to worry about.

newsgroup_monkey wrote: »

He also wants to ensure he doesn't lose out on that investment when they die

I thought it is not an investment, the OP merely wants to help out his parents?

Unless of course it is an investment and the OP wants to grab the subsidised discount and get a future rental property on the cheap.

newsgroup_monkey wrote: »

And people say to put on a tin hat?

Judging from similar posts in the past, the OP will need it :-)

OP, your parents are in the enviable position to have a secure home with no maintenance worries, and no complicated issues regarding potential deprivation of asset hanging over their heads. Wouldn't it be in your parents' best interest to leave it at that?

antrobus

newsgroup_monkey wrote: »

OK, so let me get this right.....

The OP wants to help his parents buy their Council house so that they have somewhere to retire to.

They'd have the same place to retire to if they didn't buy it. There are no indications that the council is going to take their house away from them.

newsgroup_monkey wrote: »

...He also wants to ensure he doesn't lose out on that investment when they die by adding himself to the land registry (they couldn't "gift" it back because they may get a deprivation of assets order).....

Presumably the parents could leave the house to the OP in their wills if they wanted to, thereby ensuring that they did not lose out on the investment irrespective of what it said on the land registry.

newsgroup_monkey wrote: »

..
And people say to put on a tin hat?

Am I missing something?

Yes, it would seem.

antrobus

mattcafc wrote: »

...Any infomation and help would be appreciated

How do you intend paying for the house?

Basically, your parents will get the £75k discount off the value if they buy it. They will have to repay some or all of that discount if they sell it within five years; after which, they keep it whatever. You would be free to lend your money to your parents to buy the property should you wish to do so. You could even buy an interest in the property after five years without effecting the discount received. You might or might not have an issue with CGT should you do so. The property might or might not turn out to be a good investment.

Chrysalis

My question is why are the council desperate to sell of property to the point of slapping a huge 75k discount on it when there is huge social housing shortages? what am I missing?

kingstreet

Chrysalis wrote: »

My question is why are the council desperate to sell of property to the point of slapping a huge 75k discount on it when there is huge social housing shortages? what am I missing?

Councils don't particularly want to sell their housing stock. You'll see them respond to an RTB1 form, but they don't go out of their way to offer the RTB.